Question

Which of the following correctly explains the standardised approach for computing credit risk under Basel capital requirements, in India?

A Banks to assign risk weights to assets based on internal credit ratings taking into account the probability of default
B Banks to assign risk weights to assets based on internal credit ratings taking into account the probability of default and loss given default
C Banks to assign risk weights to assets based on internal credit ratings taking into account the probability of default, loss given default and exposure at default
D Banks to assign risk weights to assets based on external credit ratings
E Banks to assign risk weights to assets based on RBI’s risk based supervision approach
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